Appeal No. 1996-2986
Application 08/348,625
Co. v. Signature Financial Group, Inc., 149 F.3d 1368, 1373,
47 USPQ2d 1596, 1600 (Fed. Cir. 1998) first identified the
judicially created three categories that are not patentable
(laws of nature, natural phenomena and abstract ideas) citing
Diamond v. Diehr, 450 U.S. 175, 209 USPO 1 (1981). The
opinion went on to note "the mathematical algorithm is
unpatentable only to the extent that it represents an abstract
idea" and is thus not "useful." State Street Bank 149 F.3d at
1373 & n.4, 47 USPQ2d at 1600-01 & n.4. Later in its opinion,
the court returned to this issue: "[T]he mere fact that a
claimed invention involves inputting numbers, calculating
numbers, outputting numbers, and storing numbers, in and of
itself, would not render it nonstatutory subject matter,
unless, of course, its operation does not produce a ‘useful,
concrete and tangible result.’" State Street Bank 149 F.3d at
1374, 47 USPQ2d at 1602. In this case, the court stated that
"the transformation of data, representing discrete dollar
amounts, by a machine through a series of mathematical
calculations into a final share price, constitutes a practical
application of a mathematical algorithm . . . because it
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